You might think that your online merchant processor is doing all it can to help your business, but that may not be the case. The two are crucial to the running of an e-commerce business, so if you’re not up to date on how cards work, where they come from, and how they’re accepted, you could be losing money. To keep your business moving forward and making more sales while looking out for its best interests, it is important to know about these processors and what makes them great for different types of merchants.
Merchant accounts and merchant processors are both critical to the functioning of an ecommerce business, but they’re different things. You can think of a merchant account as the bank account you have for your business; it’s what your customers use to pay for their purchases with credit cards. A merchant processor is the company that processes those transactions.
Merchant accounts and processors are so crucial because you need them in order for your customers to buy from you online—the whole point of having an e-commerce site.
If you’re not up-to-date on how this works, here’s a quick rundown: When someone places an order on your site, it goes through your payment gateway (e.g., Authorize.net) into their payment processor (e.g., Adyen), which then sends them over to their issuing bank (e.g., Chase). Since this whole process happens in seconds after checkout is complete, there’s no real way to track what each individual step involved looks like unless you get access through something like QuickBooks Online.
We hope this article is helpful in providing some guidance on merchant processing and ultimately your decision to give PlatformPay.io a try.
Merchant processors have a direct influence on the merchant account provider.
It is important to note that the merchant processor has a direct influence on the merchant account provider. Understanding the cost of card machine charges is crucial for informed decisions.
This means that if you have a bad experience with a merchant processor, it can affect your relationship with your bank or other funding source. In some instances, it can lead you down the road of switching providers completely (which might not be for the best).
Merchant processors are responsible for processing credit card transactions between you and your customer.
Merchant processors are responsible for processing credit card transactions between you and your customer. They play the part of middleman between the customer, the payment gateway and card processing network. The processor receives the transaction information from your internet shopping cart, transmits it to the payment gateway, which then transmits it to the card processing network for authorization.
The processor then transmits this response back through each step of that process until they reach you again at which point they have either accepted or declined your transaction based on whether or not it meets their standards and criteria. Before reaching out to a company like PlatformPay.io having a grasp of the fundamentals is key.
Processors transmit the transaction information from your shopping cart to the payment gateway, which then transmits it to the card processing network for authorization.
Merchant processors just like PlatformPay.io are responsible for processing credit card transactions between you and your customer. They transmit the transaction information from your internet shopping cart to the payment gateway, which then transmits it to the card processing network for authorization.
The process looks like this:
- Your customer places an order on your website or mobile app.
- The merchant processor receives the order details and passes them along to a third-party payment service provider (PSP), which issues an authorization request message via MasterCard’s Data Authorization Network (DAN).
It would be beneficial for you to research processors in your area by talking to other merchants like PlatformPay.io
While PlatformPay.io will likely meet and exceed your expectations, you should also talk to other merchants in your area and see what they think.
You can do a search online, but don’t forget to check out the processor’s website as well. When talking to them over the phone, ask them questions like:
- How long have they been in business?
- Do they provide 24/7 customer service?
- What are their rates? Can you get an estimate from them?
Look at their website or ask them questions over the phone.
You can also look at a merchant processors website or ask them questions over the phone. Be sure to ask for references and get a free consultation; this will allow you to make an informed decision before signing on with a new processor. Try asking them about their fees and rates as well, which many companies offer discounts if you have a high volume of sales or pay in advance for multiple months.
Learning about how merchant accounts work will help make your business more successful.
Merchant accounts are an important part of doing business. A merchant account is a contract between you and your processor that allows you to accept credit card payments from customers. The processor charges a fee for their services, but they also give you access to powerful tools like Google Checkout, Stripe, PayPal, Square and more. And for solutions like PlatformPay.io there might be more value-adds when working with a dedicated solutions provider.
It is important to understand how merchant accounts work and what they can do for your business. If you have any questions about choosing a merchant account provider, then contact PlatformPay.io today. We’re confident they’ll be able to help you or at the very least steer you in the right direction.